A family received a job transfer to Texas after living in their home in Phoenix for nearly ten years. They had to decide to move in the middle of the school year and chose to rent out their home instead of selling it. Since this was their first time renting, they felt overwhelmed about where to start. They needed to determine the rental price and who to entrust the property to before even clearing out their belongings. Situations like this are more common than you might think. There are various reasons for becoming a first-time landlord, including job transfers, family circumstances, or wanting to keep an inherited home from sitting empty.

The first challenge they faced was deciding how much to charge for rent. According to Zumper, the average rent in Phoenix as of August 2026 is $1,682, which is a 4% decrease from a year ago. A one-bedroom unit averages $1,200, while a two-bedroom goes for around $1,550. Instead of sticking to these numbers, it's safer to find and compare several listings in the same neighborhood with similar square footage. If the rent is set too high, the vacancy period will be longer, and if it's set too low, they will incur losses. Initially, this family used rental prices from another area as a benchmark, but after comparing with actual Phoenix listings, they adjusted their numbers.

Once the rent is set, the next step is finding tenants. The most common approach is to list the property on sites like Zillow Rental Manager, Zumper, and Apartments.com. Taking multiple photos during bright daylight and including information about pet policies, parking conditions, and move-in dates can reduce inquiries and attract only genuinely interested parties. If the property description is lacking, they will spend more time answering the same questions repeatedly.

When inquiries start coming in, it's crucial not to skip the tenant screening process. This involves checking credit scores, income verification, and previous rental history. Verifying income with pay stubs or bank statements and ensuring the tenant has an income at least three times the rent, as well as no late payments with previous landlords, can significantly reduce the chances of not receiving rent later. Screening costs are often passed on to applicants and are commonly accepted practice in Arizona. By consistently applying the three criteria of credit score, income, and rental history, they can provide a basis for explanation if issues arise later.

The lease agreement must clearly outline the rent amount, payment due date, lease term, security deposit amount, late fee provisions, conditions under which the landlord can visit after giving notice, and responsibilities regarding pets and smoking. Any agreements made verbally should also be documented to avoid disputes later.

In Arizona, the maximum security deposit is set at 1.5 times the rent. Even if collected under various names like pet deposits or cleaning deposits, the total cannot exceed this limit. After a tenant moves out, the landlord must return the security deposit along with a statement of deductions within 14 business days. Failing to do so can result in losing the right to make deductions, and if it's determined that the landlord wrongfully withheld funds, the tenant may recover up to double that amount.

When rent is overdue, Arizona law requires a 5-day notice. This is a notification to either pay the full amount due or vacate the property, and legal proceedings can only begin after this period. It's worth noting that weekends and holidays are included in this timeframe.

It's also advisable to decide in advance how to show the property. If there isn't enough time to show it personally, hiring a management company or agent is an option, or using a lockbox for self-showings at scheduled times is also common. In any case, it's safest to avoid giving keys to strangers without verifying their identity.

For someone renting out a property for the first time, all these procedures may feel unfamiliar. However, by following the steps one by one, it's not as complicated as it seems. By setting the rent, advertising the property, screening tenants, and including conditions in the lease, they can avoid major mistakes. This article summarizes general information, and it's advisable to consult a real estate professional or attorney before drafting an actual lease agreement.